| Popis: |
Quick response has been proposed as an appropriate operational strategy to serve volatile markets. In fashion, postponing design, production, and distribution as much as possible may indeed reduce the uncertainty related to product success. In this paper, we provide an empirical study of the influence of lead time and sourcing origin on product success, based on data provided by a European fast fashion retailer. We provide a model of sales diffusion over time where product success is characterized by the speed of sales. We then evaluate how the speed of sales is influenced by the design time and the time-to-market of each particular product. We find that delaying the time of design is very beneficial, because it allows the firm to learn about fashion trends. The effect of time-to-market is more subtle. For a shorter time-to-market, speed of sales is considerably higher, but there is limited learning obtained by postponing design. In contrast, for longer time-to-market, speed of sales is lower, but the learning is higher, so for products designed late in the season, the speed of sales is similar to that of items with short time-to-market. |
